NY Fed: Median 1-year inflation expectation falls to 6.2% in July from 6.8% in June
|The Federal Reserve Bank of New York's monthly Survey of Consumer Expectations showed on Monday that the US Consumers' one-year inflation expectations declined to 6.2% in July from 6.2% in June. The three-year inflation expectations edged lower to 3.2% from 3.6%.
Key takeaways as summarized by Reuters
"Consumers' median 5-year inflation outlook declined to 2.3% from 2.8% in June."
"Consumers see home prices up 3.5% in the next year, down from 4.4% in June."
"Consumers' year-ahead earnings growth expectation was unchanged in July at 3%."
"Consumers' median 1-year household income growth expectation rises to 3.4% in July, a new series high, from 3.2% in June."
"Consumers in July on average see 40.2% probability of higher unemployment rate in a year, down from 40.4% in June."
"Consumers' median 1-year household spending growth expectation fell 1.5 percentage point to 6.9%."
"Rising share of consumers say credit has been harder to get in the last year and will be in the year ahead."
"Fewer consumers surveyed in July said their household financial situation had deteriorated from a year ago and fewer expect it to deteriorate in the year ahead compared to June."
Market reaction
The greenback stays on the backfoot following this report and the US Dollar Index was last seen losing 0.45% on the day at 106.12.
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